Park, village officials in Vernon Hills eye $1.4 million purchase of YMCA

October 24, 2012|By Jeff Danna | Tribune reporter

Lake County Family Interim CEO Hal Katz addresses audience members at a forum in Vernon Hills on Oct. 10. (Jeff Danna, Chicago Tribune)

The village and park district of Vernon Hills will determine Thursday whether they would be willing to purchase the cash-strapped Lake County Family YMCA’s Vernon Hills facility for $1.4 million, but it’s unclear whether such an offer would prevent the closure of the facility on Oct. 31 as the organization wrestles with massive debt.

Vernon Hills Park Board President David Doerhoefer said Wednesday that park district and village officials met in closed session the previous night, to discuss whether making an offer to buy the building at 700 Lakeview Parkway would be viable. The village and park district presented a “letter of interest” Wednesday to the YMCA stating an offer of $1.4 million could be on the table, Doerhoefer said.

“We weren’t in a position to make a financial offer or commitment yet,” he said. But, the YMCA “can go to the bank and show them there is a viable entity willing to buy the YMCA.”

The offer would be contingent on the wishes of YMCA officials and votes by the park and village boards, he added. The park and village boards are scheduled to reconvene at 8 p.m. Thursday at Vernon Hills Village Hall to weigh a response from the YMCA, if it makes one, Doerhoefer said.

Last month the Lake County Family YMCA announced its two facilities in Vernon Hills and Waukegan would close Oct. 31, and its child care operations would shut down Nov. 21. Officials cited a declining number of memberships and donations as the primary reasons for the decision. The YMCA also ended last year with a $1.1 million deficit and $7.8 million in liabilities, including $6 million in debt from an earlier refinancing, according to an IRS financial statement.

A few days later, YMCA officials announced a fund raising campaign to help keep the facilities open. They said their goal was to raise $5 to $8 million. YMCA spokeswoman Anne O’Connell said the organization has raised $36,000 as of Wednesday. She added that the YMCA has been talking with village and park district officials for weeks about a possible solution to the YMCA’s problem.

“This isn’t necessarily news to us, but what is new is ... a more specific dollar amount,” she said.

If the governmental entities were to go through with the purchase, the village would loan money from reserves to the park district, which in turn would buy the building from the YMCA. Village Manager Michael Allison said Vernon Hills is in solid financial shape to make such a loan, if it opts to do so.

“It would be run as a park district facility,” Doerhoefer said. “The YMCA essentially would no longer operate that facility.”

The building possesses some amenities the park district does not, including the indoor pool and child care areas, Doerhoefer said. Duplicate facilities like the fitness center would allow the park district to expand its programming, he added.

But Doerhoefer also noted that the building could come with its share of drawbacks. A “cursory” look over the facility revealed rust and soft spots on the roof, and a replacement could cost upwards of $200,000, he said.

“That’s part of the due diligence we need to do,” he said.

While the goal of a park district purchase would be to keep the facility, it remained unclear what such a measure would mean for current members.

Libertyville resident Barb Boes said she and her family have been members at the Vernon Hills YMCA for nine years. She particularly appreciates the indoor pool – one of the few in the area.

But she since she doesn’t live in Vernon Hills, she wonders if she’d be subject to a different fee structure if the YMCA continues on as a Vernon Hills Park District facility.

She has looked into nearby fitness facilities.

“To be honest, I’m kind of turned off by them,” Boes said, adding that she wasn’t thrilled with the hours for exercise classes at private clubs.

Meanwhile, the future of the Lake County Family YMCA’s Waukegan facility was in limbo, as well. A community forum to discuss its future was scheduled for 10 a.m. Friday at Park Place, 414 S. Lewis Ave., Waukegan.

“The Waukegan community continues to work on this issue,” O’Connell said, “The mayor is quite involved.”

However, she said, she is not aware of a potential offer to buy the Waukegan facility.